A recent case was filed by an insurance company as subrogee against an alarm company in Florida under the choice-of-law rules. The insured contracted with the alarm company to provide monitoring of its business facility. Under the agreement, the alarm company was to notify the insured’s emergency listings and the police if an alarm was tripped. The insured’s facility was broken into and inventory and equipment was stolen, and the alarm company did not notify anyone. The insurance company paid the claim to its insured and sued the alarm company for contractual subrogation and subrogation in gross negligence.
In insurance, subrogation is the principle by which an insurer, having paid the losses of its insured, may recover from the third party legally responsible for the loss. So the insurance company, as a subrogee of its insured, stands in the shoes of its insured and is subject to the same defense.